1. Page 1Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy
Rocket Internet
Presentation
April 21th, 2015
2. Page 2Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy
Introduction
“To Become the World's Largest Internet
Platform Outside the United States and China”
2. Copy a Proven Business
Model
1. Identify Basic Consumer
Needs in Unserved Markets
3. Scale up the Company
3. Page 3Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy
Rocket‘s Platform Elements
Rocket Network
of Companies
Infrastructure
Processes
Technology
Proven Business Models
Standardized Master-
Launch Process
Proprietary technology
Same technical platforms
Leveraging on country
knowledge
„Never making the same
mistake twice“
Learning curve effects
4. Page 4Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy
Value Creation through Transferring Skills
Transferring
Skills
Independent Businesses
Largely Autonomous
business units
Utilize Common Skills
Best Practice Approach
Corporate Staff as
integrators
Internal Incentive System
Partly based on corporate
results
Infrastructural support
(Elements of shared activities)
Office facilities
IT support
Marketing
5. Page 5Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy
Strategy of Related Diversification (I)
Industries
E-Commerce Marketplaces Travel
Timing
Synergies
Offensive
Financial Technology
Leveraging existing strengths (Online + Industry Know-How)
Best practice approach to gain critical size
High economies of scope on corporate level
No shared activities (except IT and HR)
6. Page 6Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy
Strategy of Related Diversification (II)
Ownership
Implementation
Back-end integration
Regional based divisions
KPI driven control mechanisms
Grow the pie – Market Failure:
Exploring new/unserved markets
Capturing more of the pie – Market Power:
Scaling up quickly to build entry barriers through network effects
Back-end integration and country knowledge as leverage